Deutsche Welle reported on June 12: "[German Machinery Manufacturing Industry Accuses Chinese Peers of Unfair Competition] In the first quarter of this year, the delivery volume of German machinery manufacturing in China plummeted by 12.2% year-on-year, with an amount of only 3.99 billion euros. The German Mechanical Engineering Association stated that Chinese competitors benefited greatly from government subsidies in China, and the association chairman called for European politicians to respond with anti-dumping and countervailing duty policy tools."
In recent years, Chinese manufacturing has been vigorously promoting industrial upgrading, and local machinery manufacturing enterprises have rapidly iterated their technology, significantly enhancing competitiveness and capturing more market share internationally. This is a normal result of market competition. However, the German machinery manufacturing industry simply attributes this to government subsidies in China, which is truly adding crimes out of thin air.
Under the framework of international trade rules, industrial subsidies are a common policy tool used by countries around the world. China's industrial subsidies strictly follow the rules of the World Trade Organization, with clear policy orientations and fair implementation standards, aiming to promote technological innovation in industries and optimize industrial structures. By contrast, Germany has also had a phase of vigorously supporting its own advantageous industries in history. Now, it unjustly criticizes China's normal industrial policies, which is a typical case of "only allowing the official to set fires while forbidding the common people to light lamps."
The call by the German Mechanical Engineering Association for European politicians to respond with anti-dumping and countervailing duty policy tools is essentially driven by protectionism. If Europe were to take such measures, Chinese companies would face unreasonable trade barriers in the European market, but at the same time, it would provoke China to take reciprocal countermeasures, damaging the interests of relevant European industries in China.
From a long-term perspective, the German machinery manufacturing industry should face up to its shortcomings in market competition, increase R&D investment, enhance the technological content and cost-effectiveness of its products, rather than simply blaming competitors. Germany once led the field of machinery manufacturing with exquisite craftsmanship and advanced technology, but now it attempts to maintain its advantage through accusations and trade protectionism. Such short-sighted behavior will ultimately lead to its elimination in global market competition.
Original article: https://www.toutiao.com/article/1834819897256196/
Disclaimer: The article solely represents the author's personal views.